 "IndiGo Q4 results: Profit rises 62% on Mahakumbh demand, cost controls")
India’s largest airline, IndiGo, on Wednesday reported its highest ever consolidated net profit for the fourth quarter. The firm’s profit rose 61.9 per cent year-on-year (Y-o-Y) to ₹3,068 crore, driven by a surge in travel demand during the Mahakumbh in Prayagraj, an extended wedding season, a sharp reduction in the number of grounded aircraft over the last few quarters, and effective cost control.
The consolidated net profit for FY25 stood at ₹7,258 crore, a drop of 11.2 per cent Y-o-Y. "There was a temporary moderation in demand, led by elections and heatwave, in the first half of the year" IndiGo Chief Executive Officer (CEO) Pieter Elbers said during the post-results conference call with analysts.
“In the fourth quarter, we served the highest number of passengers in any quarter. We also posted the highest fourth-quarter profit for any year since our inception,” he added.
Operational efficiencies also played a role, with the number of grounded aircraft, which had peaked in Q2 at mid-70s, falling to 50s by Q4. Currently, the number stands at 40s, Elbers stated. This helped offset cost pressures from forex fluctuations, aircraft redeliveries, and maintenance.
IndiGo saw a net addition of 67 aircraft in FY25. For full FY26, its capacity growth is expected to be in in low double digits.
Elbers emphasised that operational disruptions due to the closure of Pakistan’s airspace had been limited. “Of the 2,200 daily flights, only 34 are taking extra flying time (on average nearly 20 minutes). We are taking additional fuel,” he explained.
IndiGo Chief Financial Officer Gaurav Negi said the airline witnessed strong travel demand in April. However, he acknowledged that there was a noticeable decline in bookings and an uptick in cancellations after the Pahalgam terrorist attack. “From April 22 until a few days ago, the bookings saw a decline. Now, it is coming up,” he noted. Expressing the hope of a swift rebound, he added: “Let’s see how fast the trend will reverse. We are optimistic that by May-end or in June, we will see a full recovery.”
On international strategy, Elbers highlighted that IndiGo was pushing into longer-haul markets. “Indian operators’ share was in mid-30s until a few years ago. Over the past years, this share has gone up to 45-46 per cent,” he said, citing regional expansion as the primary driver. “That is why we are now starting flights to destinations like Manchester,” he stated.
IndiGo also announced the launch of its first ever long-haul route connecting Mumbai and Manchester, becoming the only airline to offer non-stop service between the two cities starting July 1. The airline will operate flights thrice a week using its recently leased Boeing 787-9 Dreamliner aircraft.
‘All within air services agreement’: IndiGo defends Turkish airlines deal
IndiGo CEO Pieter Elbers on Wednesday defended the airline’s codeshare and aircraft leasing arrangement with Turkish Airlines, stating that the operations are fully within the framework of the bilateral air services agreement signed between India and Turkey. “I think it’s important to recognise that the operation to Istanbul is taking place in the context of the air service agreement between India and Turkey.” he stated. Relations between India and Turkey have nosedived during the last few weeks, after Turkey repeatedly extended full diplomatic and military support to Pakistan.